Explore eFXplus Derived Data That Drive Results
A Data Partner of:
Refinitiv
Jan 29 - 06:12 AM

GBP/USD - Options Primed For Fed And BoE Policy Meetings

By Richard Pace  —  Jan 29 - 04:10 AM
  • Overnight GBP/USD option expiry gets FOMC and key BoE MPC meeting

  • Implied volatility, which determines it's premium, has gone from 9.5 to 15.0

  • In break-even/premium terms - that's 51 to 81 pips for a straddle

  • The amount of spot pips dealers must capture before generating any profit

  • Bulk of additional premium for BoE, as FED deemed low risk in other pairs

  • See nL1N29Y04TnL1N29Y058

  • However, given BoE importance (market 50/50 on rate cut), price seems tame

  • Existing option positioning may hinder volatility nL1N29X07G



GBP/USD overnight expiry implied volatility: Click here

Source:
Refinitiv IFR Research/Market Commentary

Subscription

  • eFXplus
  • End-user license agreement (EULA)

About

  • About
  • Contact Us

Legal

  • Terms of Service
  • Privacy Policy
  • Disclaimer
© 2020 eFXdata · All Rights Reserved
!